If you're selling digital products or services, you may need to obtain a seller's permit. This allows you to collect sales tax. It's sometimes called a “sales tax permit” or “use tax permit.” It's separate from your business license: you'll likely need both a business license and a seller's permit.
You do not have to register your business with the state of Georgia unless you are planning to incorporate, become a specific legal entity or if you plan to do business with the state. In which case, you will need to become a registered vendor through the Department of Administrative Services (DOAS).
Who is required to obtain a Georgia sales and use tax number? Any individual or entity meeting the definition of a “dealer” in O.C.G.A. § 48-8-2 is required to register for a sales and use tax number regardless of whether all sales will be online, out of state, wholesale, or exempt from tax. O.C.G.A.
Georgia does not require a general business license, but you may need to obtain federal, state, or local licenses to operate legally. Your specific requirements depend on your exact location and business activities.
If you want to sell a service or product, whether within Georgia or out of state, you'll need a sales tax permit. This is also true of an online business.
One of the reasons Etsy is so popular is because the platform makes it super simple to get started. You don't need a business license to sell on Etsy, nor worry about most other business formalities, like collecting sales tax. However, in some cases, you might need to consider those things anyway.
If you want to operate a home-based business in Georgia, you'll need to follow many of the same state and local licenses or permit regulations that you would need to operate in a separate building. This includes home-based online businesses.
If you have an online business, or are thinking about starting one, you should consider forming a limited liability company (LLC). You don't need to have a formal business entity to start and run an online business, but forming an LLC can provide you with some important benefits.